Gov’t mulls using cash transfer for targeted subsidies

Gov’t mulls using cash transfer for targeted subsidies

As everyone likely knows, the government has long talked about phasing out the current blanket subsidy system in place of targeted fuel subsidies. While there was no specific mention of it in the tabling of Budget 2024 last week, it has previously been suggested that the government was expecting to implement its targeted subsidy programme early next year.

Whether this remains on track has yet to be confirmed, but the talk about a mechanism for it continues. Prime minister Datuk Seri Anwar Ibrahim says that the government is considering providing subsidies to the people through cash transfer. This, he told the Dewan Rakyat, would help prevent leakage, as Bernama reports.

“This (cash transfer) approach has been considered in several issues, and we will announce this more extensively later,” he said during the minister’s question time in parliament yesterday. He said this in reply to a question from Datuk Mohd Shahar Abdullah (BN-Paya Besar), who wanted to know whether the government is planning to provide subsidies directly to the rakyat through cash transfer.

Gov’t mulls using cash transfer for targeted subsidies

However, Anwar, who is also finance minister, said that the cash transfer would not be implemented for all subsidies, but only for specific ones. He did not detail which subsidies would involve cash transfers.

Malaysia has not revealed the mechanism it will use to dispense targeted subsidies. Last month, deputy finance minister Steven Sim said the government is exploring various mechanisms, including using the MySejahtera application for the purpose. Aside from cash transfer, the elements being studied also include a card system.

The upcoming Pangkalan Data Utama (PADU) socio-economic database will help determine who gets subsidies, and who will not. Previously, it was reported that the government would begin its targeted fuel subsidy with diesel, and this was reiterated in Budget 2024, with the announcement that diesel subsidies would be rationalised in phases.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.



  • Bekas pengundi PN on Oct 18, 2023 at 12:12 pm

    Pnpas 33bulan failed to do. Lantik lgi duta khas

    Like or Dislike: Thumb up 11 Thumb down 3
  • This is probably a better option than determining who qualifies and who doesn’t at the point of payment of fuel, because it shifts the burden to the government instead of relying on petrol station operators. It also reduces the likelihood of T20 asking B40 to pump petrol for T20’s cars and paying them like RM5 or something.

    Like or Dislike: Thumb up 7 Thumb down 2
    • Who wants to be a Millionaire on Oct 18, 2023 at 5:34 pm

      Cash transfer bantuan is a better option..for example,just tambah say 300-400 bucks monthly for petrol for B40 and M40.No need special ID card to pump petrol.
      The problem is Rafizi n Co PADU system already involved expenditure of few hundred juta RM..and if his new data landed in wrong hands,people could be targets of kidnappers or bandits.
      It was ‘reported’ that his grand idea of nasi lemak vending machines already involved 3/4 billion RM.
      The only problem with cash bantuan is how much germen is ready to transfer cash if the price of petrol is based on USD120/barrel..due to the explosive war in Gaza if shipping lanes r blocked or mined at the Straits of Hormuz?

      Like or Dislike: Thumb up 1 Thumb down 5
      • Seitha on Oct 19, 2023 at 11:45 am

        Nasi lemak vending machine?

        I rather buy nasi lemak from the makchiks who sell it beside the road or at the market or in the stall!!

        Like or Dislike: Thumb up 0 Thumb down 3
    • Why So Serious on Oct 18, 2023 at 6:30 pm

      Yeah its called; BRIM. No duh, tenkiu PM Najib for this bright idea.

      Like or Dislike: Thumb up 3 Thumb down 6
  • Zakaria on Oct 18, 2023 at 12:39 pm


    1 price tag for all just like any other developed countries.

    B40 boleh dapat capped cash back, transfer.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Wtttt on Oct 18, 2023 at 1:36 pm

    Just increase brim handout and float petrol prices in staggered phases. This doesn’t require special mechanism that cost further millions of RM to enrich certain crony companies.

    Like or Dislike: Thumb up 12 Thumb down 2
  • Ben Yap on Oct 18, 2023 at 1:46 pm

    when u give the B40s cash transfer, with their poor financial management, the cash will be use for something else like buying handphone and they will still come back and tell you that the money is not enough.

    Like or Dislike: Thumb up 28 Thumb down 6
    • This is not true. Just 2 months ago a study was conducted among the very poor in Canada. The results showed that poor people, when given govt cash/handouts tend to save most of that money and use it for daily essentials rather than spend it on luxury items.

      We don’t have the same data for MY but I don’t think it’s fair to say that B40 will spend it on handphones.

      Like or Dislike: Thumb up 4 Thumb down 9
      • Ben Yap on Oct 19, 2023 at 9:26 am

        That’s in Canada… In Malaysia, the culture is “biar papa, asalkan bergaya”.

        Like or Dislike: Thumb up 13 Thumb down 0
      • Hong Yee Hong on Oct 19, 2023 at 2:11 pm

        Joker. Did you just said Canada?

        Like or Dislike: Thumb up 7 Thumb down 0
    • Breeder on Oct 18, 2023 at 5:23 pm

      And breed any 10 b40 and the cycle continues…

      Like or Dislike: Thumb up 10 Thumb down 1
  • Innoculate on Oct 18, 2023 at 2:05 pm

    why not just use e-wallet like before…tng e-wallet transfer much easier

    Like or Dislike: Thumb up 6 Thumb down 4
  • You give cash to this group of people, not that they will buy more food to feed the children. They will use it to change sport rim or lower the spring. They will still whine “Rakyat tengah susah” on Pengeluaran KWSP fb page. And more importantly, they still will not vote for you.

    Like or Dislike: Thumb up 32 Thumb down 6
    • Rakyat Malaysia on Oct 18, 2023 at 4:19 pm

      takpela. Kerajaan perpaduan PHBN berjiwa besar

      Like or Dislike: Thumb up 6 Thumb down 0
    • Seitha on Oct 19, 2023 at 11:47 am

      Well said…
      Anwar had open houses in Kedah, Kelantan and Terengganu and the people still voted for the dump pas pis pus

      Like or Dislike: Thumb up 3 Thumb down 0
  • Why not said on Oct 18, 2023 at 3:26 pm

    mostly B40 who dont own any cars get petrol tongkat?

    Like or Dislike: Thumb up 3 Thumb down 0
  • Anonymous on Oct 18, 2023 at 4:10 pm

    I’m wondering if all B40 gets it or B40 that drive car/motorbike gets it?

    Like or Dislike: Thumb up 4 Thumb down 0
  • Jeffrey Tan on Oct 18, 2023 at 7:11 pm

    Since starting February until today l have no working, EPF in my account is only Rm102 balance whatever bantuan giving my is rejected..

    Like or Dislike: Thumb up 1 Thumb down 2
  • Haidi on Oct 19, 2023 at 2:10 pm

    Giving cash is the most ineffective form of all subsidies, in my opinion, for Malaysian.
    Most get the money, spent it in a day or two, and they continue to feel poor in the remaining days of the year.
    Average Malaysian do not have a strong fundamental of financial management. Admit it.

    Like or Dislike: Thumb up 9 Thumb down 0
  • Emmesso on Oct 19, 2023 at 6:11 pm

    Keep the cash for public transport infrastructure and improving zoning laws. Make it even cheaper to live by not needing to own a vehicle to commute. Simple as.

    Like or Dislike: Thumb up 2 Thumb down 0
  • P Kalimuthu on Nov 02, 2023 at 6:34 am

    Sememangnya T20 juga berhak sebab mereka pembayar cukai. Malaysia for Malaysian. Semua berhak menerima faedah daripada kerajaan. Menarik subsidi daripada mereka ibarat mencuri dari yang kaya untuk diberikan kepada yang susah.

    Like or Dislike: Thumb up 0 Thumb down 0

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